Marsh & McLennan Companies, Inc. (MRSH) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+19.8%

$245.47

vs $204.95 price

Levered DCF

$212.70

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

2.76

Grey zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	21.88×	25.75×	24.93×	27.08×	28.04×	29.4×	32.39×	24.46×
P/B	5.98×	7.83×	7.68×	7.85×	8×	6.5×	7.23×	5.37×
P/S	3.35×	4.27×	4.12×	3.99×	4.45×	3.44×	3.39×	2.7×
EV / EBITDA	14.75×	17.9×	16.73×	17.95×	18.44×	17.46×	19.24×	14.9×
Gross margin	42.3%	42.8%	42.4%	41.7%	42.4%	41.2%	41.5%	42.4%
Operating margin	23.1%	23.8%	23.2%	20.7%	21.8%	17.8%	16.1%	18.5%
Net margin	15.4%	16.6%	16.5%	14.7%	15.9%	11.7%	10.5%	11.0%
Current ratio	1.1×	1.13×	1.1×	1.06×	1.24×	1.24×	1.06×	1.21×
Debt / equity	1.42×	1.64×	1.27×	1.28×	1.2×	1.49×	1.83×	0.78×
Interest coverage	6.48×	8.31×	9.14×	9.13×	9.71×	5.95×	5.11×	9.52×
Dividend yield	1.9%	1.4%	1.4%	1.4%	1.2%	1.6%	1.6%	2.0%
Payout ratio	40.8%	37.3%	34.6%	37.3%	32.6%	46.8%	50.5%	48.9%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	27.5%	30.4%	30.8%	29.0%	28.5%	22.1%	22.4%	22.0%
Return on invested capital	12.1%	11.6%	13.2%	12.1%	11.6%	8.2%	7.4%	12.1%
Return on assets	7.1%	7.2%	7.8%	6.9%	9.1%	6.1%	5.6%	7.6%
Free cash flow yield	5.5%	3.8%	4.1%	3.6%	3.5%	5.1%	3.4%	5.2%
Earnings yield	4.6%	3.9%	4.0%	3.7%	3.6%	3.4%	3.1%	4.1%
Enterprise value	$109.1B	$124B	$105.7B	$94.6B	$99.5B	$70.7B	$69.4B	$45.1B
Net debt / EBITDA	2.54×	2.81×	1.91×	2.28×	2.11×	2.84×	3.62×	1.57×
Cash conversion cycle (days)	18	18	8	4	2	3	12	11